Latest News | Employer Compliance Needs Thorough Reexamination, Says Report

New Delhi, Feb 28 (PTI) Employer compliance in the country needs a thorough reexamination as entrepreneurs cannot compete in the 21st century with the 19th and 20th-century regulatory environment, according to a report.

The report titled 'Simplifying Compliance Management for The Logistics & Supply Chain Industry' suggested a three-vector framework--rationalisation, digitisation and decriminalisation-- to undertake policy reforms for facilitating ease of doing business in the country.

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The report released by Teamlease Regtech, a regulatory technology (Regtech) solutions company, examines the sectoral concerns and gives an overview of the regulatory environment for the logistics and supply chain industry.

There is a lot of duplication, redundancy and overlap across compliances, the report noted and recommended that a detailed analysis of such opportunities should be conducted.

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The list should be classified into items that can be executed by executive order and those requiring legislative change. Based on an initial assessment, at least 20 to 30 per cent of the compliances can be reduced without affecting the outcomes.

Criminal penalties in business laws should be used with extreme restraint. Misdemeanours such as procedural lapses and technical non-compliances should be punished with financial penalties only whereas criminal penalties should be retained only for serious crimes involving intentional harm.

All imprisonment clauses must go through legislative scrutiny at least once in five years, the report suggested. For this, sunset clauses can be introduced in the legislative process to ensure either the renewal or termination of imprisonment clauses depending on their need and relevance in light of the evolving business climate.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)